MIXI’s Tempting Takeover Offer for PointsBet
MIXI Adjusts Its Proposed Acquisition Offer for PointsBet
The Australian subsidiary of Japanese tech powerhouse, MIXI, has upped the ante in their bid to buy PointsBet. After originally offering a cool AUD 353 million ($229 million), MIXI has now sweetened the deal, proposing a juicier AUD 398 million ($258 million)!
This new bid comes at a time when PointsBet is weighing a separate proposal from Betr Australia. The evolution of this deal has seen some serious competition between MIXI and rivals, Betr.
The Acquisition Saga: PointsBet Meets Betr Entertainment
In February 2025, MIXI Australia kickstarted the acquisition talks with PointsBet for approximately AUD 353 million, roughly translating to $AU 1.06 per share. This was a whopping 27.7% more than the closing price at the time[1][4].
However, Betr Entertainment, in a strategic move, countered this bid with their offer worth AUD 360 million, consisting of AUD 260 million in cold hard cash, and an additional AUD 100 million in Betr scrip[1]. The repercussions of this counter-offer sent PointsBet leaders into frenzy, considering it a superior offer.
PointsBet, while engaged in mutual due diligence with Betr, didn't disregard the MIXI proposal entirely. The competitive landscape between MIXI and Betr has resulted in a series of moves and counter-moves[1].
MIXI Brings the Heat
MIXI has raised the stakes even higher with their latest offer. If approved, PointsBet's shares will be valued at a tantalizing AUD 1.20 each[2][5]. This new bid adds a substantial AU$ 49 million to the original offer and values PointsBet at a sizzling AU$ 402 million.
However, this mega-deal isn't in the bag yet. A Scheme Meeting has been scheduled for June 25 for PointsBet shareholders to cast their votes[2]. If approved, the deal will be executed through a Scheme of Arrangement (SOA) and implemented on July 8. But there's always a possibility that these timelines may shift based on various factors[2].
If the SOA fails to secure necessary approvals, MIXI has hinted that it might consider an off-market takeover[2].
Side Notes:
- The evolving deal between MIXI and PointsBet has been a rollercoaster ride, with MIXI’s initial offer met with a counterbid from Betr, and now a revised offer from MIXI[1][2].
- The revised offer from MIXI implies an enterprise value-to-EBITDA multiple between 28.7 to 36.6 based on PointsBet's FY25 guidance[2].
- The deal is still in competition with Betr's interests, as Betr acquired nearly 20% of PointsBet earlier in the year[2].
In light of the ongoing competition between MIXI and Betr, the enhanced AUD 398 million offer from MIXI towards PointsBet's acquisition presents an opportunity for shareholders to consider not only finance and investing but also the business implications of their decision. If approved, the Scheme of Arrangement (SOA) could potentially bring significant changes to PointsBet's sportsbook operations and overall financial status.
